The Statement of Retained Earnings for Redwood Systems Ltd

question 14

Multiple Choice

The statement of retained earnings for Redwood Systems Ltd. shows a retained earnings balance of $300 million on December 31. During the year, Redwood generated net income of $60 million and paid dividends of $20 million to its stockholders. What was the beginning balance of retained earnings at the start of this year?

• A)$300 million
• B)$260 million
• C)$380 million
• D)$340 million
• E)$220 million

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Definitions:

Set Point

The genetically influenced weight range for an individual; it is maintained by biological mechanisms that regulate food intake, fat reserves, and metabolism.

Genetically Influenced

Traits or characteristics that are shaped in part by an individual's genetic makeup.

Metabolic Rate

The rate at which the body uses energy to maintain basic life functions such as breathing, circulation, and cell production.

Set Point Theory

A theory suggesting that an individual's body weight is maintained around a biologically predetermined point, making significant long-term weight change difficult.